BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
99.9% passenger journeys 230.9km on-time route length 11 rail lines 93 stations
5.76 million average weekday patronage in Hong Kong Early review of FAM concluded with all passengers to benefit
38 MTR Corporation Our Aims and Achievements We aim to be the best public transport service provider in Hong Kong, offering safe, reliable and caring service to our customers. At the same time we seek to generate sustainable returns, thereby enabling us to make the investments required to maintain high levels of service and meet customers’ present and future needs. These involve replacing and upgrading our existing railway assets as well as investing in new railway lines. Together, they form “Rail Gen 2.0”, a next generation rail that will support Hong Kong’s development as an economy and as a society.
In 2017, our services were again amongst the safest and most reliable in the world. We continue to gain a deeper understanding of our customers to allow us to plan ahead and devise enhancements to our services, as outlined in our 2030 Customer Experience Vision Blueprint. To support the Belt and Road initiative, the MTR Academy shall play a strategic role in promoting the export of Hong Kong’s railway industry skills and knowledge.
Our Challenges • Express Rail Link opening in the third quarter • Safety of project interfaces: of 2018: ensure a smooth transition from project completion prepare for passenger service commissioning to operations in order to ensure the safety of all and provide efficient and reliable high-speed rail concerned journeys to the public by the third quarter of 2018 • Workforce transition and digitisation: • Managing major asset upgrades and deliver extensive training to our railway operations replacements: employees relevant to the innovative technologies carry out required major asset upgrades and we are introducing replacements without compromising our service performance or the customer experience
Our Strategies • Safety First, Excellent Service: • Customer Engagement and Experience: cultivate our robust “Safety First” culture. Equip staff understand and deliver what matters most to our with clear guidelines and sound training regarding customers, enhancing the travelling experience and operations and customers. Continue to raise meeting the needs arising from an aging population customers’ safety awareness and service digitisation • Maintaining Very High Performance Standards: • Staff Development: maintain world-class levels of service performance treat people as our most valuable asset, be that exceed the targets set out in the Operating committed to inspire, engage and develop our Agreement and our own more demanding employees while continuing to offer long-term, Customer Service Pledges. Continue our stringent rewarding careers in various disciplines maintenance regime, investing significantly in • MTR Academy: renewing and upgrading our railway assets aim to become a globally recognised railway management and engineering centre of excellence providing programmes for our staff, Hong Kong and the global railway industry
Annual Report 2017 39 BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
EBITDA HK$7,475m 2.1%
EBIT HK$1,656m 35.6%
40 MTR Corporation FINANCIAL PERFORMANCE extinguishers wereinstalledinstations. were launchedin2017.Inaddition,moreportablefire their knowledgeofstationevacuationprocedures customers’ awarenessaboutfiresafetyandimprove management. Severalprogrammestostrengthen initiatives toraisepublicawarenessandenhancerisk Government on25April2017andcontainedvarious and effective.Thepanel’sreportwassubmittedto that itshandlinghadbeenrobust,orderly,speedy we setuptoinvestigatetheincidentconcluded on 10February2017.TheExecutiveReviewPanel our responsetothearsonattackononeoftrains Our “safetyfirst”culturewaswelldemonstratedby another excellentperformance. heavy railnetworkandlightthanin2016, were 5.5%fewerreportableeventsontheHongKong Safety isanabsolutepriorityforMTRandin2017there SAFETY to increasesinstaffcosts,whilefareadjustmentfor decreased by2.1%toHK$7,475million,mainlydue mainly fromthegrowthinpatronage.EBITDA rose by3.1%toHK$18,201millionin2017,benefiting Total revenueoftheHongKongtransportoperations In HK$million Total Revenue Hong KongTransportOperations Operating profitbeforedepreciation,amortisationand Operating profitbeforeinterestandfinancecharges EBIT Margin(in%) EBITDA Margin(in%) variable annualpayment(“EBITDA”) after variableannualpayment(“EBIT”)
Causeway Baystations. Admiralty, WanChaiand subsequently extendedto Tong Stationandwas label commencedatKwun a new“PlatformGap”safety performance further. Trialof was formedtolookintoimprovingrelevantsafety continued, whileaPlatformGapSpecialTaskForce Programmes toenhancesafetyonescalators HK$1,656 million. significantly, resultinginEBITdecreasingby35.6%to increased thedepreciationandamortisationcharges of thetwonewlines,aspreviouslyhighlighted,has 2017/2018 wasrolledoverto2018/2019.Theopening Year ended31December 18,201 41.1% 7,475 1,656 2017 9.1% 17,655 14.6% 43.2% 7,633 2,572 2016 Annual ReportR 2017eport Inc./(Dec.) % (5.5%) pts. (2.1%) pts. (35.6) (2.1) 3.1 41
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
PATRONAGE AND REVENUE Fare revenue figures from our Hong Kong transport operations are as follows:
Year ended 31 December In HK$ million 2017 2016 Inc./(Dec.) % Fare Revenue Domestic Service 12,840 12,395 3.6 Cross-boundary Service 3,277 3,252 0.8 Airport Express 1,076 998 7.8 Light Rail and Bus 707 707 – Intercity 135 137 (1.5) Total Fare Revenue 18,035 17,489 3.1
Our patronage benefited from the stronger economy and the Service to Lo Wu and Lok Ma Chau saw patronage decrease opening in 2016 of the two new rail lines. Total patronage for all by 0.6% to 112.5 million, mainly as a result of continued strong of our rail and bus passenger services increased by 2.6%, for the competition from other modes of transport. Patronage on the first time surpassing 2,000.0 million passenger trips per annum. Airport Express rose by 3.0% to 16.6 million, supported by an increase in air passenger traffic. For the Domestic Service (comprising the Kwun Tong, Tsuen Wan, Island, Tung Chung, Tseung Kwan O, Disneyland Resort, Average weekday patronage for all of our rail and bus East Rail (excluding the Cross-boundary Service), West Rail, passenger services in Hong Kong in 2017 rose by 3.0% to 5.76 Ma On Shan and South Island lines), total patronage reached million. The Domestic Service, which accounts for the majority 1,637.9 million, a 3.2% increase over 2016. The Cross-boundary of this patronage, reported a 3.6% increase to 4.77 million.
42 MTR Corporation marginally from21.4%to21.5%. share toandfromtheairportincreased business from51.2%to50.8%.Ourmarket reduced ourshareoftheCross-boundary Competition fromothermodesoftransport traffic was69.6%,comparedto68.6%in2016. Within thistotal,theshareofcross-harbour 2017 was49.1%,comparedto48.4%in2016. public transportmarketinHongKong The Company’soverallshareofthefranchised MARKET SHARE 10.2 (Percentage) perator n on ar et areo a or ran port (Percentage) perator ro n t e ar our ar et areo a or ran port 27.0 24.7 13.7 10 7 27 2 1 3.4 2.3 2 201 201 201 201 49.1 69.6 7 7 Annual Report 2017 ra an err e reen n u t er u e R err e u e R 43
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
a en er an are are ren
22 2 200 1 00 2,000 a roll n e 20 2 000 (avg. 7.2% 18.0 1 200 1 1 00 growth p.a.) 1 1 00 u er o 1 000 o po te 1 1 00 a en er on u er (million) 00 r e n e 12 1 200 r t ale (avg. 4.2% 10 7 9.02 1 000 growth p.a.) 2 00 00 are Re enue (HK$ billion) A era e are 00 le t ale 00 e lu e A rport 00 pre an A era e are 200 nter t er e 2 200 (HK$) (avg. 3.9% 0 0 le t ale 0 growth p.a.) 201 201 201 201 2017 1 0 1 0 2000 2010 2017
FARE ADJUSTMENTS, PROMOTIONS AND CONCESSIONS Our fares are governed by the Fare Adjustment Mechanism • Rebate linked directly to business profit. A 3% rebate is (“FAM”), which is subject to regular review. On 21 March 2017, being offered for each Octopus trip for at least six months we announced that the early review of the FAM, conducted each year from 2017/2018 to 2022/2023. This will be done jointly with Government, had concluded, resulting in revised by topping up where necessary the concession amount arrangements designed to benefit all passengers, whilst set aside in accordance with an enhanced Profitability- ensuring the financial sustainability of the Company. During Linked Arrangement and Service Performance-Linked the review process, we listened to the opinions of different Arrangement. The rebate for 2017/2018 ended on 17 stakeholders, including passengers and shareholders. Two December 2017 important pillars of the FAM remain unchanged, namely In addition to the above two new features, a new discount the FAM formula itself and the “direct-drive” nature of the of HK$0.3 for interchange between MTR and 500-plus GMB formula’s application. However, two key new features have routes will be offered to Octopus users starting from the been introduced that benefit passengers directly: second quarter of 2018. • Special adjustment for six years. The calculated fare The next scheduled review of the FAM will be in 2022/2023, adjustment rate is being reduced by 0.6 percentage with its application starting in mid-2023. point each year from 2017/2018 to 2022/2023 through a special annual adjustment outside of the FAM formula. After applying the FAM formula, the special annual adjustment For 2017/2018, the overall fare adjustment rate has been of 0.6 percentage point and the one-off 10% discount, the further reduced by 10% calculated Overall Fare Adjustment Rate for 2017/2018 came to +1.49%. This is within the range of ±1.5%, under which, according to the FAM, the adjustment rate has been rolled over to the following year (2018/2019). Hence, there was no adjustment of MTR fares in 2017/2018.
44 MTR Corporation billion in 2017 and target eligible passengers such as students billion in2017andtargeteligible passengerssuchasstudents concessions andpromotions,whichamountedtooverHK$2.6 These savingschemesareinadditiontoourongoingfare also beenextendedforoneyearupto31May2018. first use.The“EarlyBirdDiscountPromotion”Programmehas extended from30daysto40days,countingthedayof the MTRCitySaversoldfrom1July2017onwardshasbeen Pass Extra”andMTRCitySaver.Furthermore,thevalidityof continue toenjoyfaresavingsbyusingfivetypesof“Monthly distance journeystotheurbanareaandacrossharbourcan Frequent MTRtravellerscommutingonmediumtolong and willfullysupportitsimplementation. Transport FareSubsidyScheme.MTRwelcomesthescheme SAR inherinauguralPolicyAddressproposedaPublic On 11October2017,theChiefExecutiveofHongKong service sinceitsopeningin1998. from 18June2017.Thisisthefirstadjustmenttofaresforthis Fares ontheAirportExpresswereraisedbyanaverageof9.6% every trip. operator inHongKongtoprovidediscountsstudentson and theelderly.MTRiscurrentlyonlymajortransport Annual Report 2017 45
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
SERVICE PERFORMANCE Train service delivery and passenger journeys on-time in our On 5 August 2017, a signalling system problem occurred on heavy rail network in 2017 remained at a world-class level the Kwun Tong Line that caused delays. We set up an Executive of 99.9%. As a result, we exceeded both the targets in our Review Panel to examine the cause of the incident and the Operating Agreement and our own more stringent, Customer handling procedures, and identify areas for improvement. Service Pledges. More than 2.11 million train trips were made The panel concluded that the incident was managed in a safe on our heavy rail network and around 1.09 million trips were manner according to established procedures. The signalling made on our light rail network during the year. In 2017 there fault was found to have resulted from intermittent data loss were nine delays on the heavy rail network and one delay on caused by the corrosion of electrical contacts in a junction the light rail network, each lasting 31 minutes or more which box near Ngau Tau Kok Station. To reduce the risk of a similar were caused by factors within our control. We continue to signalling failure incident in future, the copper datalink system work diligently to reduce both the number of delays and the concerned was converted to a fibre optic system with a higher impact on passengers. fault tolerance in October 2017. Other recommendations
International Performance Comparisons: the 17-member Community of Metros (CoMET)
Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro Metro system network data (2016) MTR* A B C D E F G H I J K L M O P Q
Passenger journeys (million) 1,700 1,593 553 1,008 1,543 1,399 1,663 581 2,367 1,785 1,552 489 672 768 1,970 888 740
Car kilometres (million) 288 455 128 199 251 585 383 180 821 559 262 110 135 135 487 115 127
Route length (km) 200 460 146 187 301 427 226 286 339 532 206 115 104 130 588 69 131
Number of stations 91 232 173 147 164 270 163 248 189 425 303 66 100 79 305 61 108
* The Lines included in the CoMET metro benchmarking programme are Kwun Tong Line, Tsuen Wan Line, Island Line, South Island Line, Tung Chung Line, Tseung Kwan O Line, Disneyland Resort Line, East Rail Line, Ma On Shan Line and West Rail Line. The Airport Express is excluded from the benchmarking.
Note: The other metros in the comparison are London Underground, New York City Transit, Sistema de Transporte Colectivo, Régie Autonome des Transports Parisiens Metro, Régie Autonome des Transports Parisiens Réseau Express Régional, Metropolitano de São Paulo, Moscow Metro, Metro de Madrid, Metro de Santiago, Berliner Verkehrsbetriebe, SMRT Corporation Limited, Delhi Metro Rail Corporation Limited, Shanghai Metro Operation Corporation, Beijing Mass Transit Railway Operation Corporation, Taipei Rapid Transit Corporation and Guangzhou Metro Corporation. The benchmarking agreement prohibits specifically identifying the data by metro system.
46 MTR Corporation en ar n o par on MTR’s highlevelofservicewasagainrecognisedbyanumberawards,somewhicharelistedinthetablebelow: RECOGNITION OFOURSERVICES the regularmaintenanceofdatacables. dissemination duringsuchatypicalsituationsandenhancing improving passengercommunicationsandinformation by thepanelarenowbeingimplemented.Theseinclude (passenger kmpercapacitykm) System utilisation (passenger journeyson-time) Service reliability MTR Performancevs.Best • • Best .hkWebsiteAwards2016 • Customer ServiceExcellenceAward2017 • • IDC DigitalTransformationAwards2017 • • Top ServiceAwards2017 • • Sing TaoServiceAwards2016 • • • Hong KongServiceAwards2017 Awards Received Bus Light Rail Airport Express Domestic andCross-boundaryservices Service QualityIndex
2016 Most Liked.hkWebsiteAward Commercial Category(CorporateStream)–GoldAward Grand Award–Gold Asia PacificDigitalTransformeroftheYear Hong KongDigitalTransformeroftheYear Best StaffAward–Bronze Category AwardofPublicTransportation Category AwardofCorporateVoluntaryTeam Category AwardofPublicTransportation Distinguished Achievement10-yearAward Corporate ResponsibilityAward Public TransportationCategoryAward 201 70.0 72 7 99.9 e t er or an e 100 (number ofpassengerspertrackkm) Density (percentage oftrainson-time) Punctuality 2017 70 69 83 69 70 7 99.9 2016 69 69 83 69 Cost andStaffEfficiency Service Quality Index and Fare Index respectively: Service QualityIndexandFarerespectively: measured byregularsurveysandresearch,reflectedinthe Customer satisfactionregardingourservicesandfaresis (revenue pertotalcost) Cost efficiency MTR Performancevs.Best Bus Light Rail Airport Express Domestic andCross-boundaryservices Fare Index 2016 2015 Organisation Hong KongInternetRegistrationCorporationLimited Hong KongAssociationforCustomerServiceExcellence International DataCorporation Next Magazine Sing TaoDaily East WeekMagazine 100 100 (capacity kmperstaffhour) Staff efficiency Best Performance=100 Annual Report 2017 2017 66 68 73 58 88.4 2016 100 66 68 74 58 47
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
Operations Performance in 2017
Customer Performance Service Actual Service performance item Requirement Pledge Target Performance Train service delivery – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 98.5% 99.5% 99.9% – East Rail Line (including Ma On Shan Line) 98.5% 99.5% 99.9% – West Rail Line 98.5% 99.5% 99.9% – Light Rail 98.5% 99.5% 99.9% Passenger journeys on-time – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line and Disneyland Resort Line 98.5% 99.5% 99.9% – Airport Express 98.5% 99.0% 99.9% – East Rail Line (including Ma On Shan Line) 98.5% 99.0% 99.9% – West Rail Line 98.5% 99.0% 99.9% Train punctuality – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line and Disneyland Resort Line 98.0% 99.0% 99.7% – Airport Express 98.0% 99.0% 99.9% – East Rail Line (including Ma On Shan Line) 98.0% 99.0% 99.9% – West Rail Line 98.0% 99.0% 99.9% – Light Rail 98.0% 99.0% 99.9% Train reliability: train car-km per train failure causing delays ≥ 5 minutes – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express N/A 650,000 5,202,676 – East Rail Line (including Ma On Shan Line) and West Rail Line N/A 650,000 8,158,284 Ticket reliability: smart ticket transactions per ticket failure – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line, Airport Express, East Rail Line (including Ma On Shan Line) and West Rail Line N/A 9,500 68,442 Add value machine reliability – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 98.0% 99.0% 99.8% – East Rail Line (including Ma On Shan Line) 98.0% 99.0% 99.9% – West Rail Line 98.0% 99.0% 99.8% – Light Rail N/A 99.0% 99.7% Ticket machine reliability* – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 97.0% 99.0% 99.7% – East Rail Line (including Ma On Shan Line) 97.0% 99.0% 99.8% – West Rail Line 97.0% 99.0% 99.5% Ticket gate reliability – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 97.0% 99.0% 99.9% – East Rail Line (including Ma On Shan Line) 97.0% 99.0% 99.9% – West Rail Line 97.0% 99.0% 99.9% Light Rail platform Octopus processor reliability N/A 99.0% 99.9% Escalator reliability – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 98.0% 99.0% 99.9% – East Rail Line (including Ma On Shan Line) 98.0% 99.0% 99.9% – West Rail Line 98.0% 99.0% 99.9% Passenger lift reliability – Kwun Tong Line, Tsuen Wan Line, Island Line, Tseung Kwan O Line, South Island Line, Tung Chung Line, Disneyland Resort Line and Airport Express 98.5% 99.5% 99.7% – East Rail Line (including Ma On Shan Line) 98.5% 99.5% 99.8% – West Rail Line 98.5% 99.5% 99.7% Temperature and ventilation – Trains, except Light Rail: to maintain a cool, pleasant and comfortable train environment generally at or below 26°C N/A 97.5% 99.9% – Light Rail: on-train air-conditioning failures per month N/A <3 0 – Stations: to maintain a cool, pleasant and comfortable environment generally at or below 27°C for platforms and 29°C for station concourses, except on very hot days N/A 92.0% 99.8% Cleanliness – Train compartment: cleaned daily N/A 99.0% 99.9% – Train exterior: washed every 2 days (on average) N/A 99.0% 100.0% Northwest Transit Service Area Bus Service – Service Delivery N/A 99.0% 99.6% – Cleanliness: washed daily N/A 99.0% 100.0% Passenger enquiry response time within six working days N/A 99.0% 100.0%
* Performance data for Light Rail will be available after completion of installation, testing and trial operations of the new ticket machines.
48 MTR Corporation completion towards the end of 2018 or early 2019. It will be completion towards theendof2018orearly2019. Itwillbe is underway.The TsuenWanLinere-signallingis targetedfor substantially completed.Traintesting duringnon-traffichours equipment alongthetrackside and inindoorareashasbeen Line isbeingre-signalledfirst,and installationofnewsignalling replacement atatotalcostofHK$3.3 billion.TheTsuenWan Resort lines,aswelltheAirportExpress,areundergoing Tsuen Wan,TseungKwanO,TungChungandDisneyland The existingsignallingsystemsontheIsland,KwunTong, Upgrade ofSignallingSystem 2019 and2023. vehicles willenterpassengerserviceprogressivelybetween rail vehicleswillbedeliveredtoHongKongin2018andthe vehicles, allatacostofHK$745million.Thefirstbatchlight replacing 30lightrailvehiclesandpurchasingtenadditional With demandforourlightrailservicesincreasing,weare New LightRailVehicles Hong Kongbeforetheyareputintoservice. undergo stringenttestingandcommissioningproceduresin final batchoftrainsduetobedeliveredin2023.Thewill train wasdeliveredtoHongKonginJanuary2018,withthe Tsuen Wan,IslandandTseungKwanOlines.Thefirst8-car comfortable 8-cartrainstoreplacethoseontheKwunTong, A totalofHK$6billionisbeingspenton93new,more New Trains on theExistingNetwork Major AssetUpgradesandReplacements headed “HongKongNetworkExpansion”. information ontheseprojectscanbefoundunderthesection the MainlandofChinawhentheyarecompleted.Further will improveconnectivityacrossHongKongandwith Hong KongExpressRailLinkandShatintoCentralLink, namely theHongKongSectionofGuangzhou-Shenzhen- The tworemainingnewrailwayprojectsunderconstruction, New RailwayProjects and renewingourHongKongrailwayassets. more thanHK$8.6billionwasspentonmaintaining,upgrading customer experiencethroughtheuseoftechnology.In2017, on theexistingrailnetwork,aswellinitiativestoenhance construction, alsocoversmajorupgradesandreplacements Hong Kong,whichinadditiontothetwonewrailprojectsunder Rail Gen2.0encapsulatesourneartermrailbusinessgrowthin RAIL GEN2.0 original target. also completedinDecember2017,oneyearearlierthanthe retrofit AutomaticPlatformGatesontheMaOnShanLinewas converted 8-cartrainshadcomeintoservice.Ourprojectto replaced by8-cartrains.Asof31December2017,allnewand existing 154-cartrainsontheMaOnShanLinehavealsobeen Rail Lineandallaretargetedtobeinservicebymid-2018.The the converted8-cartrainshadenteredserviceonWest West Corridorofthenewline.By31December2017,24 to enhanceexistingtrainservicesandservethefutureEast trains ontheWestRailLinearebeingconvertedto8-car Under theShatintoCentralLinkproject,existing287-car Major InterfacingWorks replacement ofchillersinourotherstationsanddepots. completion inApril2018.Theseworkswillbefollowedbythe two depotscommencedinDecember2017,withtargeted replacement ofthefirst29chillersinsevenstationsand and fourdepotswereawarded.Installationworksforthe Contracts forthereplacementof160chillersat38stations Replacement ofChillers the event of extended train service delays. To help passengers the eventofextended trainservicedelays.Tohelp passengers and alternativetransportationinformation topassengersin Traffic Newsfunctionnowprovides moretimelyoperational to theirdesiredexitatdestination station.Theenhanced passengers thespecifictraincar and doorthatwillbenearest Fast Exit,whichappliestoallrailwaystations,recommends to interchangeplatformsandstationfacilitiesmoreeasily. Station servedasapilotstation,allowsuserstofindtheirway “Fast Exit”werelaunched.In-stationFinder,forwhichAdmiralty in September2017,twonewfunctions,“In-stationFinder”and The MTRMobileapphasover1millionmonthlyactiveusersand to customerswhilefacilitatingsmootherrailwayoperations. innovative technologytoprovidemorepersonalisedservices improvements totheMTRMobileapp,whichleverageon We havelaunchedaseriesofdigitalinitiatives,including experience throughtheapplicationofnewtechnology. upgrades, weaimtoenhanceourpassengers’journey Under RailGen2.0,inadditiontonewlinesandmajorasset through Technology Enhancing theCustomerExperience expected in2026. followed byotherlinesprogressively.Theoverallcompletionis Annual Report 2017 49
Financials and Other Information Corporate Governance Business Review and Analysis Overview BUSINESS REVIEW HONG KONG TRANSPORT OPERATIONS
plan their journeys ahead even better, Green, Yellow and Red provides customers with information about their destination, as indicators have been introduced to represent the real-time well as offering a more personalised experience. status of each rail line in the MTR Mobile app and on the MTR With electronic payments becoming increasingly popular, in website. A new “Ticket Suggestion” function was also launched December 2017 we rolled out a trial scheme to accept Alipay on the MTR website and MTR Mobile app in June 2017. This and WeChat Pay at certain ticket machines at Lo Wu and Lok new function helps passengers choose the ticket type with the Ma Chau stations. The trial scheme will be gradually extended lowest fare based on their travel patterns. In January 2018, a to Tsim Sha Tsui, East Tsim Sha Tsui and Causeway Bay stations “Chatbot” function was launched for the MTR Mobile app that by the first half of 2018.
OTHER NETWORK IMPROVEMENTS Providing more frequent services A new 300-metre long footbridge connecting Tsz Ching Estate Further enhancements to train services during 2017 and Tsz Wan Shan Shopping Centre was opened for public commenced in February, when 148 extra weekly train trips use on 19 October 2017. This is the last pedestrian facility were added to the Kwun Tong, Tsuen Wan and Island lines, built under the Shatin to Central Link project to improve the increasing frequency and convenience, especially on Fridays walking environment for pedestrians in the Tsz Wan Shan area. and at weekends. A new pedestrian subway and entrance at Wan Chai Station were opened in December 2017 to enhance connectivity. Enhancing station facilities The improvement works at Mong Kok Station were completed, Responding to Changing Needs with one new escalator installed in August 2017. One new As outlined in our 2030 Customer Experience Vision Blueprint, lift was installed at Kowloon Tong Station in December 2017. we are gaining a deeper understanding of customers Six hydraulic lifts at Kwun Tong, Quarry Bay, Causeway Bay, which enables us to respond to their needs. During 2017, Kowloon Tong and Fanling stations were refurbished as service improvements were made in line with this vision, traction lifts and opened for public use during the year. including free mobile device charging service at “iCentres”
50 MTR Corporation System Information works toinstallpublictoiletsattwointerchangestations, free EntranceD1onTaikooShingRoad.InOctober2017, wheelchair userstofacilitatetheiruseofthestation’sbarrier- a trialschemebeganofferingfreeaccessible-carservicefor gradually rolledoutstartingfrom2018.InSeptember2017, developing therelatedage-friendlyprovisionswhichwillbe toilet provisionandinformationprovision.Wearenow four keyareasforimprovement,namelyaccessibility,mobility, To meettheneedsofanageingpopulation,wehaveidentified renovation works. interchange stationsalongsidewiththeirrespectivemajor of installingpublictoiletsandbabycareroomsatseven breastfeeding environment.Wearealsointheprocess 2017, providingpassengersinneedwithacomfortable rest roomslocatedin20interchangestationssinceDecember colleagues, wehavecreatedbreastfeedingspaceatthestaff With theunderstandingandjointeffortsofourstation growing needsforbreastfeedingfacilitiesinthecommunity. and LokMaChaustations.Wehavealsorespondedtothe in 13stationsandadditional“FreeWi-Fi”hotspotsatLoWu Minimum trainheadway(second) Daily hoursofoperation Number ofrailcars Total routelength(km) Railway operationdata – – – –
– – –
– – – – – East RailLineandMaOnShan Express andLightRail Island Line,TungChungDisneylandResortWestRailAirport Island Line,TsuenWanKwunTongTseungKwanOSouth Light Rail Disneyland Resort Line Disneyland ResortLine West Rail Line West RailLine Airport Express Airport Express Hong Kong to Tsing Yi Hong KongtoTsingYi Hong Kong to Tung Chung Hong KongtoTungChung Tung ChungLine Tseung Kwan O Line Tseung KwanOLine Ma On Shan Line Ma OnShanLine Hung Hom to Lok Ma Chau Hung HomtoLokMaChau Hung Hom to Lo Wu Hung HomtoLoWu Hung Hom to Sheung Shui Hung HomtoSheungShui East RailLine South Island Line South IslandLine Island Line Island Line Kwun Tong Line Kwun TongLine Tsuen Wan Line Tsuen WanLine board informationontheAirportExpressandbuses. completed during2017.Improvementswerealsomadetoon- Wan, IslandandTseungKwanOlineshadsubstantiallybeen of PassengerInformationDisplaysinKwunTong,Tsuen information forpassengers,rolloutofthenewgeneration As partofourcontinuingeffortstoensuretimelyandrelevant Improving passengercommunications merchant coupons. domestic ridesonMTR,aHK$50MTRMallsGiftVoucherand a speciallydesignedfreeone-daypassforunlimited month wereeligibletoredeemabirthdaypackcontaining Card holderswhosebirthdayfellontheluckydaydrawneach programme concludedon31March2017.HongKongIdentity The popular12-monthlong“HappyBirthday•HappyJourney” completed during2017. of anurseryroomatHungHomIntercityDepartureHallwas re-layout ofmale,femaleandaccessibletoiletsprovision and areexpectedtobecompletedbythefirsthalfof2019.A namely TiuKengLengandYauTongstations,commenced Morning Peak Morning Peak 270 270 171 600 240 360 133 180 600 327 212 200 112 126 120 Evening Peak Evening Peak 230.9 2,244 2017 19.5 19.0 300 270 210 600 240 360 133 240 600 327 200 200 124 140 120 Morning Peak Morning Peak 270 270 171 600 240 360 133 180 600 327 212 200 112 126 120 Annual Report 2017 Evening Peak Evening Peak 230.9 2,146 2016 19.5 19.0 300 270 210 600 240 360 133 240 600 327 200 200 124 140 120 51
Financials and Other Information Corporate Governance Business Review and Analysis Overview